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For additional information relating to this article, please contact:

Thomas Storring	Director – Economics and Statistics
Tel: 902-424-2410	Email: thomas.storring@novascotia.ca

March 02, 2026
ALBERTA BUDGET 2026-27

The Province of Alberta released its provincial budget for 2026-27 on February 26, 2026.   

Alberta's 2026-27 budget anticipates a deficit of $9.37 billion, widening from the $4.13 billion deficit now forecast for the 2025-26 fiscal year.  Over the subsequent two fiscal years, Alberta's deficit is projected to contract to 6.9 billion by 2028-29.

Alberta's provincial government revenues are projected to contract by 1.0% in 2026-27 while expenditures are projected to rise by 5.7%.  For 2027-28, revenues are projected to grow by 5.9% while expenditures rise 3.1%.  In 2028-29, revenue growth is projected at 3.3% while expenditures grow 2.2%.                                                                                                                  

 

Measured as a share of GDP, the footprint of provincial government in Alberta's economy amounts to 17.1% of GDP in 2026-27.  This is projected to shrink slightly to 16.3% of GDP by 2028-29.  Alberta's deficit for 2026-27 amounts to 1.9% of projected 2026 nominal GDP.  The deficit is projected to shrink to 1.3% of GDP by 2028-29. 

Alberta's net debt is expected to amount to 10.5% of GDP in 2026-27.  By 2028-29, Alberta's net debt is projected to amount to 12.9% of GDP.  

Alberta's 2026-27 Budget expenditures amount to $16,507 per capita, funded by revenues of $14,664 per capita and a deficit of $1,844 per capita.  Expenditures per capita are projected to rise by $455 by 2028-29 while per capita revenues rise $974 and the per capita deficit declines by $519.

Compared with last year's fiscal plan, Alberta's revenues are projected to be weaker (-$2.84 billion for 2026-27) while expenditures are projected to be higher (+$4.10 billion).  

With similar revenues and higher expenditures, Alberta's deficit outlook has deteriorated compared to the 2025-26 deficit projection.    

Alberta's economic outlook is highly sensitive to assumptions about prices and activity in oil production. For 2026, the Alberta Budget assumes an oil price ($USD/barrell, West Texas Intermediate) of $60.50 because of global oversupply, rising to $67.00 in 2027-28 as global demand firms up.  Alberta's economic growth is projected to slow, with real GDP rising 1.8% in 2026 as decelerating population growth limits consumer spending, residential construction and labour market expansion.  Although there is a tailwind from lower interest rates, uncertainty about US tariffs is expected to keep investment muted.  With falling oil prices, Alberta's nominal GDP is projected to rise by only 1.9% in 2026.  With recovering oil prices and increasing trade diversification assumed for 2027, Alberta's real GDP growth is projected to accelerate to 2.3% in 2027 (6.0% in nominal terms).  

Key Measures and Initiatives

Alberta's Budget prioritizes fiscal discipline and focus on priority programs.

Health care

• $34.4 billion in total health expense, including $1.9 billion in new health funding
• $525 million in additional funding for 50,000 more surgical procedures at chartered surgical facilities over the next 3 years 
• Targeted investments at the Royal Alexandra Hospital to enhance triage, speed up patient flow and move patients more efficiently through the system.
• Continued funding of $26 million for 30 psychiatric beds and 60 community-based mental health and addiction beds (of which 30 will be added in 2026-27). 
• $1.7 million provided to 2 civil societies to support Albertans experiencing overdose or substance disorder 
• $804 million in 2026-27 and the following 2 years for improved ambulance deployment and rural staffing
• $223 million additional funding over the next 3 years to expand Cancer Care Alberta’s workforce and clinical capacity
• $91 million over the next 3 years for expanding capacity in emergency departments and operating rooms
• $87 million over the next three years to expand the role of nurse practitioners
• $33 million for compassionate mental health and addictions intervention
• $53 million to operate 9 holistic addiction recovery and rehabilitation communities 
• $22 million is provided in 2026-27 to support wellbeing programs and supports for youth
• $298 million for continuing care initiatives and capacity 

Education, labour and skills

• $722 million in new funding to support enrolment growth, teacher compensation, improved classroom conditions, and school infrastructure
• $1.8 billion budgeted in 2026-27 to support students with specialized learning needs
• $355 million in 2026-27 and $1.4 billion over 2026-27 to 2028-29 to hire 1,500 more education assistants and 3,000 more teachers
• $3.3 billion to support new and ongoing school projects
• $1.3 billion towards Alberta student loans, scholarships and grants
• $96 million through the Apprenticeship Learning grant
• $148 million over 3 years for new Targeted Enrolment Expansion initiatives to in high demand post secondary programs
• $115 million in workforce strategies
• $16 million for economic immigration programs and services
• $81 million for labour relations, occupational health and safety and employment standards
• $4 million in 2026-27 to support training opportunities for Indigenous people

Building communities

• $20 million to support multicultural and newcomer supports and anti-racism initiatives
• $80 million in capital funding through 2028-29 to expand irrigation capacity and address water supply needs 
• $169 million to support effective wildfire mitigation
• $2.4 billion in provincial funding, including $1.1 billion in federal support, over 3-years for light rail projects in Calgary and Edmonton
• $179 million in grant funding in 2026-27 from the First Nations Development Fund 
• $38.1 million in 2026-27 to the Alberta Foundation for the Arts 
• $9 million to build or enhance sport and recreational facilities 

Industry and trade 

• $530,000 for engagement on future nuclear projects
• $7 million to support a pre-feasibility study of a bitumen pipeline to the west coast of British Columbia
• $155 million in 2026-27 for the Orphan Well Society
• $60 million for the Film and Television Tax Credit.
• $28 million for the Investment and Growth Fund.
• $15 million for the Invest Alberta Corporation.
• $605 million in 2026-27 for Agriculture support and insurance programs 
• $16 million to support the Indigenous Reconciliation Initiative, the Aboriginal Business Investment Fund and the Community Support Fund. 

Families and communities

• $2.1 billion to increase access to licensed childcare
• $405 million to the Alberta Child and Family Benefit program in 2026-27
• $768 million for the Affordable Housing Partnership Program over 3 years
• $4.1 million in 2026-27 to prevent elder abuse
• $586.6 million in 2026-27 through the Alberta Seniors Benefit, grants and low-interest home equity loans 
• $64 million in 2026-27 for the seniors' Lodge Assistance program
• $217.5 million in 2026-27 to support homeless shelters, Navigation and Support Centres, and housing supports programs
• $105 million in 2026-27 to design and deliver preventive social programs to address key social issues in communities
• $156 million in 2026-27 for mental health and addiction services for children and youth
• $22 million in 2026-27 to build and $53 million to operate recovery community facilities 

Alberta Budget 2026-27

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